December 29, 2014

In McLaulin v. Commr., 276 F.3d 1269 (11th Cir. 2001), a parent corporation acquired control of a subsidiary corporation within the 5 year window specified in Code §355(b)(2)(D), by virtue of the subsidiary corporation's redemption of the stock of another shareholder. The other shareholder’s interest in the subsidiary before the redemption exceeded 20%. Gain was recognized on the redemption and the active business requirement of Code §355(a)(1)(C) was not met. Below is a chart of...
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January 24, 2014

Below are four new situational charts of examples found in Treas. Reg. §1.355-2(c)(2). The examples apply the continuity of interest requirement of Code §355 to four different situations. Images of the charts are shown below and links to PDFs of the charts are also available: Treas. Reg. §1.355-2(c)(2) Example 1, Treas. Reg. §1.355-2(c)(2) Example 2, Treas. Reg. §1.355-2(c)(2) Example 3, Treas. Reg. §1.355-2(c)(2) Example 4. We will shortly add these charts to andrewmitchel.com, where you...
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December 31, 2013

Last week the IRS published the following Private Letter Ruling relating to international taxation. PLR 201352007 - Code §355 spin-offs and reorganizations involving U.S. and foreign corporations. Code §368(a)(1)(D). As described earlier, this post may exclude PLRs dealing with typical international related elections.
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September 27, 2013

Today the IRS published the following Private Letter Ruling relating to international taxation. PLR 201339001 - Code §355 spin-off and reorganizations of domestic and controlled foreign corporations.
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September 11, 2013

Below is a chart of Rev. Rul. 70-434 in which the I.R.S. held that a stock-for-stock exchange qualified as a "B" reorganization even though it occurred after a spin-off. The chart can be viewed as a PDF file here: Rev. Rul. 70-434
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For the 30th week of 2013, the IRS published the following Private Letter Rulings and Chief Counsel Advice relating to international taxation. PLR 201330002 - Code §355 spin-off and reorganizations of foreign and domestic corporations owned by a U.S. parent corporation. Code §368(a)(1)(D). PLR 201330006 - Controlled foreign corporation's ("CFC's") distributive share of income from a foreign partnership is not includable in foreign base company income. Code §954. PLR 201330009 - Late entity classification election...
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For the 28th week of 2013, the IRS published the following Private Letter Rulings relating to international taxation. PLR 201328003 - Multiple cash transfers disregarded as a circular flow of cash (cash contribution by Foreign Parent into Newco, followed by Newco cash purchase of Oldco Subsidiaries, followed by Oldco distribution of cash to Foreign Parent). Transaction treated as though Oldco distributed shares of Subsidiaries to Foreign Parent and Foreign Parent then contributed Subsidiaries into Newco....
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August 20, 2013

For the 15th week of 2013, the IRS published the following Private Letter Ruling relating to international taxation. PLR 201315016 - Code §355 spin-off and reorganizations of controlled foreign corporations. Code §368(a)(1)(D).
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August 19, 2013

For the 14th week of 2013, the IRS published the following Private Letter Rulings relating to international taxation. PLR 201314001 - Code §355 spin-offs involving U.S. and foreign corporations that are directly or indirectly owned by a foreign parent company. Code §368(a)(1)(D). PLR 201314002 - A real estate investment trust’s (REIT’s) deemed inclusions as Subpart F Income under Code §951 and passive foreign investment company (“PFIC”) inclusions under Code §1293 are considered qualifying income under...
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August 16, 2013

We have fallen months behind in publishing our weekly summary of private letter rulings with international considerations. We are in the process of getting caught up. Over the next several weeks we plan to publish posts of the missing weeks. For the 12th week of 2013, the IRS published the following Private Letter Rulings and Chief Counsel Advice relating to international taxation. PLR 201312017 – Code §355 spin-off and reorganizations of controlled foreign corporations. Code...
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November 24, 2012

This week the IRS published the following Private Letter Rulings relating to international taxation. PLR 201246006 - Late entity classification election for foreign entities to be treated as partnerships. Form 8832. Treas. Reg. §301.7701-3(c). PLR 201246014 -Late entity classification election for a foreign entity to be treated as a disregarded entity. Form 8832. Treas. Reg. §301.7701-3(c). PLR 201246015 -Late entity classification election for a foreign entity to be treated as a disregarded entity. Form 8832....
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August 25, 2012

Last week the IRS published the following Private Letter Ruling relating to international taxation for the 33rd week of 2012. PLR 201233016 - Spin-off and reorganizations of controlled foreign corporations.
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Recently the IRS published the following Private Letter Rulings relating to international taxation for the 32nd week of 2012. PLR 201232010 - Late entity classification election for a foreign entity to be treated as a disregarded entity. Form 8832. Treas. Reg. §301.7701-3(c). PLR 201232014 - Spin-off, including whether gain is recognized under Code §367(a) as part of a reorganization. PLR 201232025 - Late Canadian registered retirement savings plan ("RRSP") deferral election. Form 8891. Rev. Proc....
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July 21, 2012

Last week the IRS published the following Private Letter Rulings relating to international taxation for the 29th week of 2012. PLR 201229002 - Spin-off by a controlled foreign corporation followed by reorganizations. PLR 201229006 - Late entity classification election for a foreign entity to be treated as a partnership. Form 8832. Treas. Reg. §301.7701-3(c). PLR 201229009 - Late relief for a foreign entity treated as a partnership to make a Code §754 election.
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Several weeks ago the IRS published the following Private Letter Rulings and Chief Counsel Advice relating to international taxation for the 28th week of 2012. There were no international related Private Letter Rulings for the 27th week of 2012. PLR 201228013 - Taxpayer is a resident alien and will become a nonresident alien, and then again a resident alien. Taxpayer’s unused net operating losses that were generated while he was taxed as a U.S. resident,...
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Disclaimer

The posts on this blog have not been verified for accuracy. You should consult an attorney for legal advice regarding your own situation. These posts are not updated for changes in the tax laws. Further, these posts should not be relied upon for any purpose whatsoever.